Ownership Trends in NSE-Listed Companies
In the March quarter of 2025, Domestic Institutional Investors (DIIs) surpassed Foreign Portfolio Investors (FPIs) in ownership of NSE-listed companies for the first time since 2009, according to Prime Database.
Key Statistics
- DIIs held a 17.62% stake, increasing from 16.89% in December 2024.
- FPI ownership stood at 17.22%.
- The value of DII holdings was Rs 71.76 trillion, which is 2% higher than FPIs.
Historical Context
A decade ago, in March 2015, the ownership gap was significant, with DII holdings valued at half of FPIs, peaking at 1,032 basis points.
Market Dynamics
- DIIs, along with retail investors and high-net-worth individuals (HNIs), have increased their ownership to an all-time high of 27.10% as of March 31, 2025.
- FPIs have historically been the largest non-promoter shareholders, but their influence is decreasing.
Comments from Industry Experts
Pranav Haldea, Managing Director of PRIME Database Group, emphasizes that FPIs' control over the Indian market has diminished.
Trivesh D, COO of Tradejini, highlights that the increasing local ownership by DIIs provides stability against global market volatility. He notes that during October 2024, domestic investors absorbed over Rs 1 trillion in FPI selling, preventing market turmoil.
Significant Milestones
- Domestic mutual funds achieved a milestone with their ownership in NSE-listed firms reaching 10.35%, a double-digit figure for the first time.
Overall, the shift in ownership towards domestic investors suggests a more resilient and locally-driven Indian stock market.